XP Power Limited saw its shares tank on Monday after warning on full year results which it said would be at the lower end of current analyst expectations.
Shares in the critical power control solutions slumped 8.72% to 2,775p on the warning which came as the group announced first half results.
Gross and operating margins were impacted by both lower production volumes and compounded by inflation where there is a lag to full recovery in higher customer pricing, and also ongoing global logistics challenges.
James Peters, Chair, commented:
“While underlying demand remained strong across all sectors, a combination of external supply chain factors, which restricted our capacity to deliver to customers, and inflationary pressures have produced a challenging backdrop in the first half.”
“The team is working hard to mitigate these industry-wide challenges, with an improvement in performance in quarter two being sustained into the early weeks of the second half.”
“While we are confident of a substantially better performance in the remainder of 2022 supported by the inventory on hand and a record, committed order book, there remains a wider range of full year outcomes than in prior years including scenarios where full year outturn is at the lower end of current analyst expectations.”
“Longer term, the Group’s prospects remain bright, we are excited by the additional capacity to come from our new Malaysian facility and the opportunities that will provide. “
Vast Resources surges on Romanian mining update
Vast Resources PLC (AIM:VAST), the AIM-listed production and development company, saw its shares surge 17.19% to 0.75p on positive news from its mining development in Romania.
The group said it will commence molybdenum concentrate production in August 2022 at its Baita Plai Polymetallic Mine in Romania.
Vast Resources said it could confirm that the 0.6m3 cells are installed in the flotation circuit and production of a molybdenum concentrate will commence in August 2022.
A further update would be provided when the company reports on quarterly molybdenum production as part of its quarterly production reporting.
Knights slides after broker downgrade
Shares in legal and professional services business, Knights Group Holdings PLC (AIM:KGH), slipped 2.4% to 132p hurt by a downgrade by broker Liberum to sell from buy.
Slashing its price target to 100p from 290p the broker said:
“That the number of red flags has increased, and the quality of earnings has continued to deteriorate at Knights, making our previously positive stance on the shares untenable.”
“ Non-underlying costs have grown again despite fewer acquisitions.”
“ Work in progress remains elevated, lock-up days are much higher on our metrics, there are some signs of staff dissatisfaction, and leverage could be higher than it appears.”
“Our analysis suggests the risk profile has materially worsened.”
Wishbone lifted by encouraging Australian update
AIM Listed Wishbone Gold PLC (AIM:WSBN) saw its shares surge 23% after reporting encouraging results at the company's Red Setter Gold-Copper Project in the Patersons Range area in Western Australia.
The company said
“The first drill hole drilled in this programme was a water bore to set the drill programme up for diamond drilling, with the first diamond drill hole (WRSDD0002), a vertical hole on the same drill pad.”
“This hole intersected visible mineralisation but was terminated at 384metres depth to move to the current hole, which was designed to test the top of the magnetic signature.”
“After completion of the current hole, WRSDD0002 will be re-entered and pushed further to test the mineralisation.”
Richard Poulden, Wishbone Gold's Chairman, commented:
"It has taken some time to get the diamond drilling underway at Red Setter, and I am very pleased to see these encouraging signs of mineralisation from the drilling thus far.”
“On the strength of what is being seen to date, Wishbone is now endeavouring to secure an additional diamond drill rig.”
“ I look forward to further positive results as we target the ~3km strike of the magnetic models. This is an exciting time for Wishbone."